Belgium government collapse: King asks former PM for help

Belgium's King has asked a former Prime Minister to help steer the country out
of a political and economic crisis, after the government resigned last week
over its failed bailout of striken bank Fortis.

12:52AM GMT 23 Dec 2008

Belgium was plunged into its third political crisis in a year on Friday when Prime Minister Yves Leterme's coalition collapsed following a Supreme Court report on political meddling during attempts to rescue the bank.

King Albert II accepted Mr Leterme's resignation and has asked former PM Wilfried Martens to mediate in efforts to put together a new government. A palace statement said Mr Martens had accepted.

"It is an exploratory task to try and seek agreement," Mr Martens said.

Martens, an eight-time prime minister who led coalition governments during the 1980s, is not expected to lead the new coalition. Instead, the elder statesman will try to seek common ground between the six major parties and quickly form a new coalition to deal with the global financial crisis.

The government of Mr Leterme has been accused of trying to influence an appeals court as the state tries to sell most of Fortis, once the country's largest bank, to France's BNP Paribas. Thousands of jobs are at risk and many Belgian shareholders have seen their stakes become nearly worthless.

The separation of powers is a cornerstone of Belgian parliamentary democracy and the alleged attempts by the government to influence the judicial process infuriated partners in an already shaky coalition government.

In a statement, Mr Leterme denied any wrongdoing.

"I insist that at no moment was there any attempt to influence, let alone attempt to obstruct, due process," Leterme said. Nonetheless, he said he would not serve in the new coalition.

The Fortis case had been one of Leterme's biggest tests since he became prime minister in December 2007. The formation of his coalition ended six months in which Belgium had no government. No party won a clear majority in the June 2007 elections.

The major parties are expected to quickly form a new government because of the financial crisis.